Section 21 in The Petroleum and Natural Gas Rules, 1959
21. Cancellation of licenses and leases. - (1) If the licensee or the lessee or his executors, administrators or assigns at any time during the term of the license or the lease--
(a)fails to fulfil, or contravenes, any of the terms, covenants and conditions contained therein, or(b)fails to use the [area] covered by is bona fide for the purpose for which it has been granted, or(c)uses such [area] [ Substituted by G.S.R. 295(E), dated 1.4.2003.] for a purpose other than that for which it has been granted.[the Central Government, or, as the case may be, the State Government with the prior approval of the Central Government] [ Inserted by G.S.R. 295(E), dated 1.4.2003.][, may, after considering the representation, if any, made by such person impose the penalty aforesaid] [ Substituted by G.S.R. 684, dated 5.5.1976.], where it is satisfied that the failure, contravention or user is such as cannot be remedied, on giving thirty days' notice to such person, [and after considering the representation if any, made by him] [ Inserted G.S.R. 684, dated 5.5.1976.] forfeit the whole or any part of the security deposit made under rule 11 (1) or rule 13 (1) (a) and may cancel the license or the lease. Such cancellation shall be published in the Official Gazette and shall take effect from the date of such publication. If the failure, contravention or user is considered to be of a remediable nature [the Central Government or the State Government, as the case may be, shall give notice] [ Substituted by G.S.R. 371, dated 9.3.1966.] to such person requiring him to remedy the same within sixty days from the date of receipt of the notice and informing him that the penalty as aforesaid may be imposed if such remedy is not provided within such period. [The Central Government, or, as the case may be, the State Government with the prior approval of the Central Government] [Substituted by G.S.R. 371, dated 9.3.1966. ][, may, after considering the representations if any, made by such person, impose the penalty aforesaid] [ Substituted by G.S.R. 684, dated 5.5.1976.], if such person fails to so remedy within such period:Provided that the failure on the part of such a person to fulfil any of the terms, covenants and conditions of the license or the lease shall not give the State Government any power to impose the penalty as aforesaid in so far as such failure arises from force majeure ; and if through force majeure the fulfilment of any of the terms, covenants and conditions of the license or the lease be delayed, the period of such delay shall be added to the period fixed by the license or the lease for the performance of any act. " Force majeure " includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake, and any other happening which the licensee or the lessee could not reasonably prevent or control.(2)A license or a lease may be cancelled either wholly or in part [by the Central Government where such license or lease has been granted by it and by the State Government, after the approval of the Central Government, where such license or lease has been granted by it] [ Substituted by G.S.R. 371, dated 9.3.1966.] upon the written request of the licensee or the lessee or, where there are two or more of them, of not less than one-half of their number and such cancellation shall be published in the Official Gazette and shall take effect from the date of such publication: Provided that in the case of a request for cancellation in part of a license or a lease, if the State Government is of the opinion that survey or re-survey is necessary such survey or re-survey shall be carried out by a mining surveyor and the licensee or the lessee shall within the period specified by the State Government pay to the State Government for such survey or re-survey such fee as the State Government may, with the approval of, the Central Government, determine.(3)If during the term of a license or a lease any part of the land covered by it is required for any public purpose, [the Central Government or as the case may be, the State Government after approval of the Central Government, may ] [Substituted by G.S.R. 371, dated 9.3.1966. ]upon one month's notice, [and after considering representation, if any, made by the person concerned] [ Inserted G.S.R. 684, dated 5.5.1976.] cancel such license or lease in so far as it relates to the said part of the land subject to such restrictions and conditions as it may impose and such cancellation shall be published in the Official Gazette and shall take effect from the date of such publication.(4)[ Where the Central Government has entered into an agreement with the licensee, license and the lease, as the case may be, shall automatically stand cancelled upon the expiry or termination of such contract.] [ Inserted by G.S.R. 295(E), dated 1.4.2003.]
